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The problem is as follows: I've installed all drivers and connected usb card to my pc (laptop by the way) and headset to the sound card. Sound works fine, the mic shows up in recording devices but it doesn't register any sound. When I connect headset directly to my laptop mic works fine.
I've tried tampering with all possible setting but no luck, also when I connected my very old mic to the sound card it worked just fine. A little bit of irony that steelseries product doesn't work with another steelseries product.

Generally, you want the on-board audio disabled. Windows can only have one default playback device. e.g. your PC sound card or the USB sound card. Recording, your Steel Series USB needs to be enabled in the Sound Panel/Recording section for it to work. And, if the on-board sound's Stereo Mix is set as default then the Steel Series mic may not be heard. As noted the conflicts and confusion. By only having one it eliminates conflicts from the other.

Just tried what you suggested but it didn't solve problem. I'm starting to think this is some sort of strange hardware issue since I hear strange noise and cracking when I enable[listen to the device]. Probably this sound card is just bad quality but maybe there is something else I didn't think of.

I got it for free so decided to try it Sound quality in my pc is decent apart from very quiet noise when nothing plays but mic quality is worse, it's manageable but sometimes annoying for people I talk with (mostly due to the fact that mic picks up some static when it is connected directly to laptop). This is laptop I'm using:MSI Global GT780
I remember trying to do something with audio drivers when I got headset but quality didn't improve much unfortunately.

nvm^, for some reason I can't install THXTruStudio PRO downloaded from official msi website, nothing happens or error "this software may not be installed properly" pops up- guess there's nothing more I can do, I'll do a fresh installation of Windows once I finish college because atm I have wayyyy too much necessary stuff

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